Euro Steadies against Dollar deriving support from Strong Chinese Economy

Daily Update - 18th April 2019

Yesterday’s Market

• GBP Consumer Price Index
• Euro Consumer Price index

Yesterday’s Explained

GBP Consumer Price Index resulted negative and pushed the sterling down ward yesterday and BoE has signaled that it will lift interest rates to stop inflationary pressures from building, but it is highly unlikely to act until the Brexit process is resolved. Euro Consumer Price Index remained the same which steadied the common currency.

 

Today’s Market

• EUR Markit Manufacturing PMI
• USD Retail Sales, Jobless Claims

Today’s Focus

For the EUR, it is a particularly busy day ahead on the economic calendar. Flash April private-sector PMI figures are due out of France, Germany, and the Eurozone. Following some particularly disappointing numbers and the IMF’s recent downward revision to growth forecasts for this year, sensitivity to the numbers will be heightened. The focus will be on Germany’s manufacturing PMI and the Eurozone’s composite. For the EUR to really gather pace, Germany’s manufacturing sector will need to see a slower pace of contraction in April. Outside of the numbers, market risk sentiment will continue to be a factor throughout the day.

For the Pound, economic data due out of the UK includes March retail sales figures. While year-on-year figures are forecasts to be positive for the Pound, retail sales are forecasted to fall in March, which will be the key driver. Softer numbers would certainly ease any pressure on the BoE to make a move near-term.

Across the pond, it’s a busy day ahead on the economic calendar. March retail sales figures are due out along with February business inventory and private sector PMI numbers. For the Dollar and risk appetite, the Philly FED Manufacturing Index and Markit Services PMI will be of greater influence, alongside retail sales figures.